Compensatory Allowance

The compensation allowance in disadvantaged areas promotes comprehensive agriculture in Hesse by partially or fully offsetting income-related disadvantages and additional expenses of agricultural enterprises in regions disadvantaged for natural reasons. Eligible to apply are owners of agricultural businesses who cultivate at least 3 hectares of eligible land in the defined areas and comply with the EU conditionality requirements according to Regulation (EU) No. 2021/2115. The program aims to secure the continuous use of agricultural land and counteract the abandonment of intensive cultivation. All farm sizes up to 500 hectares are eligible; areas exceeding this limit are not considered.

The funding rate depends on the farm size and amounts to up to 100% for areas up to 100 ha, 80% for 100.01–250 ha, and 60% for 250.01–500 ha. Grants per hectare can range between €25 and €180, depending on the yield index (EMZ) and the proportion of main fodder area (HFF). The compensation allowance is granted as a non-repayable fixed-amount subsidy within the framework of the Common Application. The application must be submitted annually by May 15th to the respective competent approval authority (district office). Required are the application folder for the Common Application as well as the corresponding information leaflet. This funding provides agricultural enterprises in structurally weak areas with planning security and financial relief to maintain cultivation in the long term.